0000098362
2010-04-01
2010-06-30
0000098362
2009-04-01
2009-06-30
0000098362
2008-12-31
0000098362
2009-01-01
2009-06-30
0000098362
2009-12-31
0000098362
2009-06-30
0000098362
2010-06-30
0000098362
2010-01-01
2010-06-30
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
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<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 0pt">
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 1 — Basis of Presentation
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying Consolidated Financial Statements (unaudited) for The Timken Company (the Company)
have been prepared in accordance with the instructions to Form 10-Q and do not include all of the
information and notes required by the accounting principles generally accepted in the United States
(U.S. GAAP) for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) and disclosures considered necessary for a fair
presentation have been included. For further information, refer to the Consolidated Financial
Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2009. Certain amounts in the 2009 Consolidated Financial Statements have been
reclassified to conform to the 2010 presentation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2009, the Company recorded two adjustments related to its 2008
Consolidated Financial Statements. Net income (loss) attributable to noncontrolling interest
increased by $6.1 million (after-tax) due to a correction of an error related to the $18.4 million
goodwill impairment loss the Company recorded in the fourth quarter of 2008 for the Mobile
Industries segment. In recording this goodwill impairment loss, the Company did not recognize that
a portion of the loss related to two separate subsidiaries in India and South Africa of which the
Company holds less than 100% ownership. In addition, income (loss) from continuing operations
before income taxes decreased by $3.4 million, or $0.04 per share, ($2.0 million after-tax or $0.02
per share) due to a correction of an error related to $3.4 million of in-process research and
development costs that were recorded in other current assets with the anticipation of being paid
for by a third-party. However, the Company subsequently realized that the balance could not be
substantiated through a contract with a third party. The net effect of these errors understated
2008 net income attributable to The Timken Company of $267.7 million by $4.1 million. Furthermore,
the net effect of these errors overstated the Company’s first quarter 2009 net income attributable
to The Timken Company of $0.9 million by $4.1 million. Had these adjustments been recorded in the
fourth quarter of 2008, rather than the first quarter of 2009, the results for the first quarter of
2009 would have been a net loss attributable to The Timken Company of $3.2 million. Management of
the Company concluded the effect of the first quarter adjustments was immaterial to the Company’s
2008 and first-quarter 2009 financial statements, as well as to the full-year 2009 financial
statements.
</div>
</div>
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<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 2 — New Accounting Pronouncements
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In June 2009, the Financial Accounting Standards Board (FASB) issued new accounting guidance that
amended the accounting and disclosure requirements for the consolidation of variable interest
entities. The implementation of the new accounting guidance related to variable interest entities,
effective January 1, 2010, did not have a material impact on the Company’s results of operations
and financial condition.
</div>
</div>
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<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 3 — Inventories
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Inventories, net:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Manufacturing supplies
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>54.8</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">53.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Work in process and raw materials
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>342.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">269.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Finished products
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>302.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">349.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Inventories, net
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>699.5</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">671.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">An actual valuation of the inventory under the last-in, first-out (LIFO) method can be made
only at the end of each year based on the inventory levels and costs at that time. Accordingly,
interim LIFO calculations must be based on management’s estimates of expected year-end inventory
levels and costs. Because these calculations are subject to many factors beyond management’s
control, annual results may differ from interim results as they are subject to the final year-end
LIFO inventory valuation. The LIFO reserve at June 30, 2010 and December 31, 2009 was $244.3
million and $237.7 million, respectively. The Company recognized an increase in its LIFO reserve
of $0.5 million and $6.6 million during the second quarter and first six months of 2010
compared to a decrease in its LIFO reserve of $1.5 million and $13.3 million during the second
quarter and first six months of 2009.
</div>
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</div>
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<div style="font-family: Helvetica,Arial,sans-serif">
</div>
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<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 4 — Property, Plant and Equipment
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, Plant and Equipment:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Land and buildings
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>590.3</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">611.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Machinery and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2,789.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,786.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Subtotal
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,379.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,398.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less allowances for depreciation
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(2,115.8</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,062.9</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, Plant and Equipment — net
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,263.5</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,335.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At June 30, 2010 and December 31, 2009, machinery and equipment included approximately $107.7
million and $104.3 million, respectively, of capitalized software. Depreciation expense for the
three months ended June 30, 2010 and 2009 was $44.9 million and $48.0 million, respectively.
Depreciation expense for the first six months ended June 30, 2010 and 2009 was $90.2 million and
$94.8 million, respectively. Depreciation expense on capitalized software for the three months
ended June 30, 2010 and 2009 was approximately $5.1 million and $5.8 million, respectively.
Depreciation expense on capitalized software for the six months ended June 30, 2010 and 2009 was
approximately $10.4 million and $10.9 million, respectively.
</div>
</div>
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<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 5 — Goodwill and Other Intangible Assets
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The changes in the carrying amount of goodwill for the six months ended June 30, 2010 are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Beginning</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ending</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Acquisitions</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Segment:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Process Industries
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>49.5</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(2.7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>46.8</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Aerospace and Defense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>162.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(0.7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>161.9</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Steel
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>9.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>9.6</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>221.7</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(3.4</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>218.3</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Other primarily includes foreign currency translation adjustments.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table displays intangible assets as of June 30, 2010 and December 31, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>As of June 30, 2010</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000">As of December 31, 2009</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Net</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Gross</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Net</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Carrying</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Carrying</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Carrying</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Accumulated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Carrying</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amortization</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Amount</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Amortization</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Amount</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td colspan="4">
<div style="margin-left:15px; text-indent:-15px">Intangible assets subject to amortization:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer relationships
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>79.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>16.5</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>62.6</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">79.1</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">14.3</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">64.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Engineering drawings
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Know-how
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Industrial license agreements
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Land-use rights
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>8.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Patents
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>4.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Technology use
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>35.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>30.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31.4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>6.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">PMA licenses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>8.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-compete agreements
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Unpatented technology
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>156.5</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>45.5</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>111.0</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">156.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">40.7</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">115.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td colspan="4">
<div style="margin-left:15px; text-indent:-15px">Intangible assets not subject to amortization:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>218.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>218.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">221.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">221.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tradename
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Industrial license agreements
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">FAA air agency certificates
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>14.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>14.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>234.8</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>234.8</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">238.3</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">238.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total intangible assets
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>391.3</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>45.5</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>345.8</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">394.5</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">40.7</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">353.8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Amortization expense for intangible assets for the three months and six months ended June 30,
2010 was $2.4 million and $4.8 million, respectively. Amortization expense for intangible assets
is estimated to be approximately $11.4 million for 2010; $11.0 million in 2011; $10.6 million in
2012; $8.1 million in 2013 and $7.7 million in 2014.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 6 — Financing Arrangements
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Short-term debt at June 30, 2010 and December 31, 2009 was as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Variable-rate lines of credit for certain of the Company’s foreign subsidiaries
with various banks with interest rates
ranging from 2.17% to 4.71% and 1.98%
to 5.05% at June 30, 2010 and December
31, 2009, respectively
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>5.0</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">26.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Short-term debt
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>5.0</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">26.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The lines of credit for certain of the Company’s foreign subsidiaries provide for borrowings up to
$280.6 million. At June 30, 2010, the Company had borrowings outstanding of $5.0 million, which
reduced the availability under these facilities to $275.6 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a $100 million Accounts Receivable Securitization Financing Agreement (Asset
Securitization Agreement), which expires November 15, 2010. Under the terms of the Asset
Securitization Agreement, the Company sells, on an ongoing basis, certain domestic trade
receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that in turn
uses the trade receivables to secure borrowings, which are funded through a vehicle that issues
commercial paper in the short-term market. Borrowings under the agreement are limited to certain
borrowing base calculations. Any amounts outstanding under this Asset Securitization Agreement
would be reported on the Company’s Consolidated Balance Sheet in Short-term debt. As of June 30,
2010, there were no outstanding borrowings under the Asset Securitization Agreement. The cost of
this credit facility, which is the commercial paper rate plus program fees, is considered a
financing cost and is included in Interest expense in the Consolidated Statement of Income.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">Long-term debt at June 30, 2010 and December 31, 2009 was as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fixed-rate Medium-Term Notes, Series A, due at various dates through
May 2028, with interest rates ranging from 6.74% to 7.76%
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>175.0</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">175.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fixed-rate Senior Unsecured Notes, due September 15, 2014,
with an interest rate of 6.0%
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>249.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">249.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Variable-rate State of Ohio Water Development Revenue Refunding Bonds,
maturing on November 1, 2025 (0.25% at June 30, 2010)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>12.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds,
maturing on November 1, 2025 (0.42% at June 30, 2010)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>9.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds,
maturing on June 1, 2033 (0.35% at June 30, 2010)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>17.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Variable-rate credit facility with US Bank for Advanced Green Components, LLC,
maturing on July 17, 2011 (1.41% at June 30, 2010)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>4.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Variable-rate credit facility with US Bank for Advanced Green
Components, LLC, guaranteed by The Timken Company,
maturing on July 17, 2011 (4.08% at June 30, 2010)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>16.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>488.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">486.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less current maturities
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>12.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>476.1</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">469.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On September 9, 2009, the Company completed a public offering of $250 million of fixed-rate 6.0%
unsecured Senior Notes, due in 2014. The net proceeds from the sale of the notes were used for the
repayment of the Company’s fixed-rate 5.75% unsecured Senior Notes, which were due to mature on
February 15, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On July 10, 2009, the Company entered into a new $500 million Amended and Restated Credit Agreement
(Senior Credit Facility). At June 30, 2010, the Company had no outstanding borrowings under its
Senior Credit Facility but had letters of credit outstanding totaling $32.2 million, which reduced
the availability under the Senior Credit Facility to $467.8 million. This Senior Credit Facility
matures on July 10, 2012. Under the Senior Credit Facility, the Company has three financial
covenants: a consolidated leverage ratio, a consolidated interest coverage ratio and a consolidated
minimum tangible net worth test. At June 30, 2010, the Company was in full compliance with the
covenants under the Senior Credit Facility.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Advanced Green Components, LLC (AGC) is a joint venture of the Company. The Company is the
guarantor of $3.8 million of AGC’s $8.5 million credit facility with US Bank. Effective as of July
17, 2010, AGC renewed its credit facility with US Bank for another 365 days.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Lines of credit for certain of the Company’s foreign subsidiaries also provide for long-term borrowings up to $27.1
million. At June 30, 2010, the Company had borrowings outstanding of $12.5 million, which reduced
the availability under these long-term facilities to $14.6 million.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:ProductWarrantyDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 7 — Product Warranty
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides limited warranties on certain of its products. The Company accrues
liabilities for warranty based upon specific claims and a review of historical warranty claim
experience in accordance with accounting rules for contingent liabilities. Should the Company
become aware of a specific potential warranty claim for which liability is probable and reasonably
estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made
quarterly to the accruals as claim data and historical experience change.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following is a rollforward of the warranty accruals for the six months ended June 30, 2010 and
the twelve months ended December 31, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance, January 1
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>5.4</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">13.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(0.9</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(12.8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending Balance
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>5.8</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">5.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The product warranty accrual at June 30, 2010 and December 31, 2009 was included in other current
liabilities on the Consolidated Balance Sheet.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 8 — Equity
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="26%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">The Timken Company Shareholders</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Accumulated</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Earnings</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Other</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Other</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Invested</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Comp-</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Non-</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Stated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Paid-In</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">in the</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">rehensive</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Treasury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">controlling</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Total</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Capital</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Capital</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Business</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Stock</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Interest</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at December 31, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,595.7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">53.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">843.5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,402.9</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(717.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">18.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td> </td>
<td align="right">115.2</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114.2</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.0</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(71.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(71.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Pension and postretirement liability
adjustment (income tax benefit of $3.2 million)
</div></td>
<td> </td>
<td> </td>
<td align="right">42.8</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42.8</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized loss on marketable securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Change in fair value of
derivative financial instruments,
net of reclassifications
</div></td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total comprehensive income
</div></td>
<td> </td>
<td> </td>
<td align="right">88.5</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividends declared to noncontrolling interest
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividends — $0.22 per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax benefit from compensation
</div></td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock-based compensation expense
</div></td>
<td> </td>
<td> </td>
<td align="right">8.5</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8.5</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Issuance of 1,232,673 shares from treasury
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(31.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.7</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(35.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Issuance of 1,119,284 share from authorized
</div></td>
<td> </td>
<td> </td>
<td align="right">17.5</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17.5</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at June 30, 2010</b>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,658.3</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>53.1</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>874.5</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,495.8</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(743.8</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(39.9</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>18.6</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The total comprehensive income for the three months and six months ended June 30, 2010 was
$41.7 million and $88.5 million, respectively. The total comprehensive income for the three months
and six months ended June 30, 2009 was $0.8 million and $40.5 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The pension and postretirement liability adjustment of $42.8 million for the six months ended June
30, 2010 includes a $14.1 million prior period adjustment (benefit) related to deferred taxes on
post-retirement prescription drug benefits, specifically the employer subsidy provided by the U.S.
government under Medicare Part D. Refer to Note 13 — Income Taxes in the Notes to the
Consolidated Financial Statements for further discussion on this prior period adjustment.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 9 — Earnings Per Share
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three months
and six months ended June 30, 2010 and 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Numerator:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income (Loss) from continuing operations attributable
to The Timken Company
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>81.4</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(39.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>109.7</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(34.5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Less: undistributed earnings (loss)
allocated to nonvested stock
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.4</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>0.5</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (Loss) from continuing operations
available to common shareholders for basic earnings (loss)
per share and diluted earnings (loss) per share
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>81.0</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(38.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>109.2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(34.1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Denominator:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average number of shares outstanding — basic
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>96,305,087</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96,147,809</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>96,336,974</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96,082,491</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Effect of dilutive options
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>571,590</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>455,855</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average number of shares outstanding,
assuming dilution of stock options
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>96,876,677</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96,147,809</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>96,792,829</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96,082,491</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic earnings (loss) per share from continuing operations
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.84</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.40</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.13</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.36</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted earnings (loss) per share from continuing operations
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.84</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.40</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.13</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.36</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The exercise prices for certain stock options that the Company has awarded exceed the average
market price of the Company’s common stock. Such stock options are antidilutive and were not
included in the computation of diluted earnings per share. The antidilutive stock options
outstanding were 1,554,605 and 4,129,493 for the three months ended June 30, 2010 and 2009,
respectively. The antidilutive stock options outstanding were 1,960,955 and 4,533,820 for the six
months ended June 30, 2010 and 2009, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 10 — Segment Information
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The primary measurement used by management to measure the financial performance of each segment is
adjusted EBIT (earnings before interest and taxes, excluding the effect of amounts related to
certain items that management considers not representative of ongoing operations such as impairment
and restructuring, manufacturing rationalization and integration costs, one-time gains and losses
on disposal of non-strategic assets, allocated receipts received or payments made under the U.S.
Continued Dumping and Subsidy Offset Act (CDSOA) and gains and losses on the dissolution of
subsidiaries).
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Net sales to external customers:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Mobile Industries
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>400.4</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">292.2</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>767.9</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">592.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Process Industries
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>211.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">206.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>416.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">430.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Aerospace and Defense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>82.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">109.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>174.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">218.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Steel
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>317.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">129.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>565.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">361.6</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,011.4</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">736.8</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,925.1</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,603.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Intersegment sales:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Process Industries
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.6</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.6</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.3</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Steel
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>20.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>42.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21.8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>21.4</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6.4</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>44.2</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">23.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Segment EBIT, as adjusted:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Mobile Industries
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>68.5</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(12.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>110.9</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(14.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Process Industries
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>28.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>55.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Aerospace and Defense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>20.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Steel
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>43.0</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(32.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>62.9</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(40.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total EBIT, as adjusted, for reportable segments
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>147.6</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">8.9</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>249.6</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">60.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unallocated corporate expenses
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(17.8</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(13.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(31.6</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(25.5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Impairment and restructuring
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(1.0</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(50.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(6.5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(64.5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Rationalization and integration charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(0.7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(2.1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3.7</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.8</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(0.1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(10.0</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(19.6</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16.9</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest income
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Intersegment adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>120.2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(61.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>194.8</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(44.0</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Intersegment sales represent sales between the segments. These sales are eliminated upon consolidation.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 11 — Impairment and Restructuring Charges
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Impairment and restructuring charges by segment are comprised of the following:
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For the three months ended June 30, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Mobile</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Process</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Aerospace</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Industries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Industries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>& Defense</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Steel</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Corporate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Severance expense and related
benefit costs
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(0.6</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.7</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.2</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exit costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.8</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(0.1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.9</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.0</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For the three months ended June 30, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Mobile</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Process</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Aerospace</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Industries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Industries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">& Defense</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Steel</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Corporate</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">2.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">26.9</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">31.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Severance expense and related
benefit costs
</div></td>
<td> </td>
<td> </td>
<td align="right">9.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Exit costs
</div></td>
<td> </td>
<td> </td>
<td align="right">0.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">12.3</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">31.5</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3.4</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2.8</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">50.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">For the six months ended June 30, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Mobile</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Process</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Aerospace</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Industries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Industries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>& Defense</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Steel</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Corporate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Severance expense and related
benefit costs
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.7</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.6</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.4</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(0.1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.6</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>5.2</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exit costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.3</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>2.6</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.7</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.7</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(0.1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.6</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>6.5</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For the six months ended June 30, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Mobile</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Process</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Aerospace</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Industries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Industries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">& Defense</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Steel</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Corporate</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment charges
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3.0</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.9</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">34.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Severance expense and related
benefit costs
</div></td>
<td> </td>
<td> </td>
<td align="right">16.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Exit costs
</div></td>
<td> </td>
<td> </td>
<td align="right">0.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">19.9</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">36.0</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3.5</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.9</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">64.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following discussion explains the major impairment and restructuring charges recorded for
the periods presented; however, it is not intended to reflect a comprehensive discussion of all
amounts in the tables above.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Selling and Administrative Reductions</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In March 2009, the Company announced the realignment of its organization to improve efficiency and
reduce costs as a result of the economic downturn. During the second quarter of 2010, the Company
reduced its severance and related benefits accruals related to this initiative by $0.6 million.
During the first six months of 2010, the Company recorded $0.7 million of severance and related
benefit costs related to this initiative to eliminate approximately 25 associates. The $0.7
million charge for the first six months of 2010 primarily related to Corporate. During the second
quarter and the first six months of 2009, the Company recorded $8.5 million and $10.8 million,
respectively, of severance and related benefit costs related to this initiative to eliminate
approximately 270 associates. Of the $8.5 million charge for the second quarter of 2009, $4.1
million related to the Mobile Industries segment, $1.8 million related to the Process Industries
segment, $1.1 million related to the Steel segment, $0.8 million related to the Aerospace segment
and $0.7 million related to Corporate. Of the $10.8 million charge for the first six months of
2009, $4.6 million related to the Mobile Industries segment, $2.0 million related to the Process
Industries segment, $1.9 million related to Corporate, $1.5 million related to the Steel segment
and $0.8 million related to the Aerospace segment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Manufacturing Workforce Reductions</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter and first six months of 2010, the Company recorded $0.8 million and $4.1
million, respectively, in severance and related benefit costs to eliminate approximately 150
associates to properly align its business as a result of the continued downturn in the economy and
expected market demand. The $0.8 million charge for the second quarter of 2010 primarily related
to the Aerospace and Defense segment. Of the $4.1 million charge for the first six months of 2010,
$1.5 million related to the Mobile Industries segment, $1.3 million related to the Process
Industries segment and $1.3 million related to the Aerospace and Defense segment. In addition, the
Company recorded $0.4 million and $1.0 million, respectively, of exit costs in the second quarter
and first six months of 2010 related to this initiative. During the second quarter and first six
months of 2009, the Company recorded $8.7 million and $15.2 million, respectively, in severance and
related benefit costs, including a curtailment of pension benefits of $1.8 million, to eliminate
approximately 1,900 associates to properly align its business as a result of the economic downturn
and expected market demand. Of the $8.7 million charge for the second quarter of 2009, $4.6
million related to the Mobile Industries segment, $1.8 million related to the Process Industries
segment, $1.7 million related to the Steel segment and $0.6 million related to the Aerospace and
Defense segment. Of the $15.2 million charge for the first six months of 2009, $10.3 million
related to the Mobile Industries segment, $2.5 million related to the Process Industries segment,
$1.7 million related to the Steel segment and $0.7 million related to the Aerospace and Defense
segment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Torrington Campus</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On July 20, 2009, the Company sold the remaining portion of its Torrington, Connecticut office
complex. In anticipation of the loss that the Company expected to record upon completion of the
sale of this property, the Company recorded an impairment charge of $6.4 million during the second
quarter of 2009.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Mobile Industries</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In March 2007, the Company announced the closure of its manufacturing facility in Sao Paulo,
Brazil. The Company completed the closure of this manufacturing facility on March 31, 2010. The
Company expects to incur pretax costs of approximately $25 million to $30 million, which includes
restructuring costs and rationalization costs recorded in cost of products sold and selling,
general and administrative expenses. Mobile Industries has incurred cumulative pretax costs of
approximately $25.3 million as of June 30, 2010 related to this closure. During the second quarter
and first six months of 2010, the Company recorded $0.3 million of severance and related benefit
costs associated with the closure of the Company’s Sao Paulo, Brazil manufacturing facility.
During the second quarter and first six months of 2009, the Company recorded $0.6 million and $1.2
million, respectively, of severance and related benefit costs and exit costs of $0.8 million
associated with the closure of this facility.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In addition to the above charges, the Company recorded impairment charges of $0.8 million during
the first six months of 2009 related to an impairment of fixed assets at one of its facilities in
France as a result of the carrying value of these assets exceeding expected future cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Process Industries</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In May 2004, the Company announced plans to rationalize its three bearing plants in Canton, Ohio
within the Process Industries segment. This rationalization initiative is expected to deliver
annual pretax savings of approximately $35 million through streamlining operations and workforce
reductions, with expected pretax costs of approximately $70 million to $80 million (including
pretax cash costs of approximately $40 million), by the end of 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company recorded impairment charges of $24.7 million and exit costs of $0.7 million during the
second quarter of 2009 as a result of the Process Industries’ rationalization plans. During the
first six months of 2009, the Company recorded impairment charges of $27.7 million and exit costs
of $1.3 million. The significant impairment charge was recorded during the second quarter of 2009
as a result of the rapid deterioration of the market sectors served by one of the rationalized
plants resulting in the carrying value of the fixed assets for this plant exceeding their projected
future cash flows. The Company then arrived at fair value by either valuing the assets in use,
where the assets were still producing product, or in exchange, where the assets had been idled.
The fair value was determined based on market comparisons of similar assets. The Company closed
this plant at the end of 2009. Including rationalization costs recorded in cost of products sold
and selling, general and administrative expenses, the Process Industries segment has incurred
cumulative pretax costs of approximately $70.2 million as of June 30, 2010 for these
rationalization plans. As of June 30, 2010, the Process Industries segment has realized
approximately $15 million in annual pretax savings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following is a rollfoward of the consolidated restructuring accrual for the six months ended
June 30, 2010 and the twelve months ended December 31, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance, January 1
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>34.0</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">17.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>6.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(20.9</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(38.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>19.6</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">34.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The restructuring accrual at June 30, 2010 and December 31, 2009 is included in other current
liabilities on the Consolidated Balance Sheet. The restructuring accrual at December 31, 2009
excludes costs related to the curtailment of pension benefit plans of $0.9 million. The accrual at
June 30, 2010 includes $12.8 million of severance and related benefits, with the remainder of the
balance primarily representing environmental exit costs. The majority of the $12.8 million accrual
relating to severance and related benefits is expected to be paid by the end of 2010.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 12 — Retirement and Postretirement Benefit Plans
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the net periodic benefit cost for the Company’s retirement and
postretirement benefit plans. The amounts for the three months and six months ended June 30, 2010
are based on actuarial calculations prepared during 2009. These updated calculations may result in
different net periodic benefit cost for 2010. The net periodic benefit cost recorded for the three
months ended and six months ended June 30, 2010 is the Company’s best estimate of each period’s
proportionate share of the amounts to be recorded for the year ended December 31, 2010.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Pension</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Postretirement</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Components of net periodic
benefit cost</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>7.0</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">10.6</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.4</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>39.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(50.8</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(48.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.8</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(0.4</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Recognized net actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>13.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Curtailment income
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>11.6</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">11.4</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>9.1</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">9.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Pension</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Postretirement</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Components of net periodic
benefit cost</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>16.5</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">19.2</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.1</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>79.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>17.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19.4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(100.1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(96.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>4.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(0.7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1.1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Recognized net actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>25.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Curtailment loss
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>26.0</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">26.2</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>19.9</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">21.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On February 12, 2009, the Company was informed of alleged irregularities in the
operation of an equity-related investment in its U.S. defined benefit pension trust. A court-appointed receiver is now in control of the
outside investment firm and is conducting an ongoing investigation into the matter. In the fourth quarter of 2009, the Company recorded
a $13 million charge to other comprehensive income for the estimated loss related to this investment. The Company has up to $25 million of
crime insurance coverage and notified its insurance carriers about the matter. In July 2010, the Company received a payment of $20 million
from one of its insurance carriers.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 13 — Income Taxes
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for (benefit from) income taxes
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>38.2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(23.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>84.1</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(4.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effective tax rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>31.8</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">37.5</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>43.2</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">9.5</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s provision for income taxes in interim periods is computed in accordance with
Accounting Standards Codification 740 by applying the appropriate annual effective tax rates to
income or loss before income taxes for the period. In addition, non-recurring or discrete items,
including interest on prior year tax liabilities, are recorded during the periods in which they
occur.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The effective tax rate on the pretax income for the second quarter of 2010 was favorable relative
to the U.S. federal statutory tax rate of 35% primarily due to earnings in certain foreign
jurisdictions where the effective tax rate is less than 35%, partially offset by losses at certain
foreign subsidiaries where no tax benefit could be recorded, U.S. state and local tax and the net
effect of other items.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The effective tax rate on the pretax loss for the second quarter of 2009 was favorable relative to
the U.S. federal statutory tax rate of 35% primarily due to earnings in certain foreign
jurisdictions where the effective tax rate is less than 35%, partially offset by losses at certain
foreign subsidiaries where no tax benefit could be recorded, as well as the net impact of discrete
tax adjustments recorded during the period, and the net effect of other items.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The effective tax rate on the pretax income for the first six months of 2010 was unfavorable
relative to the U.S. federal statutory tax rate of 35% primarily due to a $21.6 million charge recorded to reflect the deferred tax impact
of the U.S. Patient Protection and Affordable Care
Act (as amended) enacted in the first quarter of 2010, losses at certain foreign subsidiaries where no tax benefit could be recorded,
U.S. state and local taxes and the net effect of other items. These increases were
partially offset by the earnings in certain foreign jurisdictions where the effective tax rate is
less than 35%.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The effective tax rate on the pretax loss for the first six months of 2009 was unfavorable relative
to the U.S. federal statutory tax rate of 35% primarily due to losses at certain foreign
subsidiaries where no tax benefit could be recorded and the net effect of other items, partially
offset by earnings in certain foreign jurisdictions where the effective tax rate is less than 35%.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In the first six months of 2010, the Company’s unrecognized tax benefits decreased by $12.3
million. This includes a decrease of $17.9 million related to settlements with tax authorities and
a decrease of $3.0 million related to lapses in statutes of limitation, partially offset by an
increase of $8.3 million for tax positions related to prior years and an increase of $0.3 million
related to tax positions in the current year. As of June 30, 2010, the Company has approximately
$65.5 million of total gross unrecognized tax benefits. Included in this amount is approximately
$44.0 million, which represents the amount of unrecognized tax benefits that would favorably impact
the Company’s effective income tax rate in any future periods if such benefits were recognized.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In the first quarter of 2010, the Company recorded a $14.1 million adjustment to other
comprehensive income for deferred taxes on postretirement prescription drug benefits, specifically
the employer subsidy provided by the U.S. government under the Medicare Part D program (the
Medicare subsidy). During the first quarter of 2010, the Company determined it had provided
deferred taxes on postretirement benefit plan accruals recorded through other comprehensive income
net of the Medicare subsidy, rather than on a gross basis. The cumulative impact of this error
resulted in a cumulative understatement of deferred tax assets totaling $14.1 million and a
corresponding overstatement of accumulated other comprehensive loss. Management concluded the
effect of the adjustment was not material to the Company’s prior three fiscal years and first
quarter 2010 financial statements, as well as the estimated full-year 2010 financial statements.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">Note 14 — Divestitures
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On December 31, 2009, the Company completed the sale of the assets of its Needle Roller Bearings
(NRB) operations to JTEKT Corporation (JTEKT). The Company received approximately $304 million in
cash proceeds for these operations and retained certain receivables, subject to post-sale working
capital adjustments. The NRB operations primarily serve the automotive original-equipment market
sectors and manufacture highly engineered needle roller bearings, including an extensive range of
radial and thrust needle roller bearings bearing assemblies and loose needles for automotive and
industrial applications. The NRB operations have facilities in the United States, Canada, Europe
and China. Results for 2009 for the NRB operations are presented as discontinued operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following results of operations for this business have been treated as discontinued operations
for all periods presented.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">92.2</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">185.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of goods sold
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">98.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">194.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9.0</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Selling, general and administrative expenses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment and restructuring charges
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense, net
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other expense, net
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss before income taxes on operations
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(25.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(45.1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax benefit on operations
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain on divestiture
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>6.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense on disposal
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(1.9</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(2.4</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from discontinued operations
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>4.2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(25.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>4.5</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(29.1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2010, there were no assets or liabilities remaining from the divestiture of the
NRB operations.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">Note 15 — Derivative Instruments and Hedging Activities
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company is exposed to certain risks relating to its ongoing business operations. The primary
risks managed by using derivative instruments are commodity price risk, foreign currency exchange
rate risk and interest rate risk. Forward contracts on various commodities are entered into to
manage the price risk associated with forecasted purchases of natural gas used in the Company’s
manufacturing process. Forward contracts on various foreign currencies are entered into to manage
the foreign currency exchange rate risk on forecasted revenue denominated in foreign currencies.
Other forward exchange contracts on various foreign currencies are entered into to manage the
foreign currency exchange rate risk associated with certain of the Company’s commitments
denominated in foreign currencies. Interest rate swaps are entered into to manage interest rate
risk associated with the Company’s fixed and floating-rate borrowings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted
revenues, and certain interest rate hedges as fair value hedges of fixed-rate borrowings. The
majority of the Company’s natural gas forward contracts are not subject to any hedge designation as
they are considered within the normal purchases exemption.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company does not purchase or hold any derivative financial instruments for trading purposes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2010, the Company had $207.6 million of outstanding foreign currency forward
contracts at notional value. The total notional value of foreign currency hedges as of December
31, 2009 was $248.0 million.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u><b>Cash Flow Hedging Strategy</b></u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For certain derivative instruments that are designated as and qualify as cash flow hedges (i.e.,
hedging the exposure to variability in expected future cash flows that is attributable to a
particular risk), the effective portion of the gain or loss on the derivative instrument is
reported as a component of accumulated other comprehensive income and reclassified into earnings in
the same line item associated with the forecasted transaction and in the same period or periods
during which the hedged transaction affects earnings. The remaining gain or loss on the derivative
instrument in excess of the cumulative change in the present value of future cash flows of the
hedged item, if any (i.e., the ineffective portion), or hedge components excluded from the
assessment of effectiveness, are recognized in the Consolidated Statement of Income during the
current period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">To protect against a reduction in the value of forecasted foreign currency cash flows resulting
from export sales over the next year, the Company has instituted a foreign currency cash flow
hedging program. The Company hedges portions of its forecasted intra-group revenue or expense
denominated in foreign currencies with forward contracts. When the dollar strengthens significantly
against the foreign currencies, the decline in the present value of future foreign currency revenue
is offset by gains in the fair value of the forward contracts designated as hedges. Conversely,
when the dollar weakens, the increase in the present value of future foreign currency cash flows is
offset by losses in the fair value of the forward contracts.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><u><b>Fair Value Hedging Strategy</b></u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For derivative instruments that are designated and qualify as fair value hedges (i.e., hedging the
exposure to changes in the fair value of an asset or a liability or an identified portion thereof
that is attributable to a particular risk), the gain or loss on the derivative instrument, as well
as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized
in the same line item associated with the hedged item (i.e., in “interest expense” when the hedged
item is fixed-rate debt).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the fair value and location of all assets and liabilities associated
with the Company’s hedging instruments within the unaudited Consolidated Balance Sheet:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="38%"> </td>
<td width="3%"> </td>
<td width="35%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Asset Derivatives</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Liability Derivatives</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Fair</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Fair</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair Value at</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Value at</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair Value at</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Value at</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Balance Sheet Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>6/30/10</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">06/30/09</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>6/30/10</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">06/30/09</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="0" align="left" style="border-top: 1px solid #000000"></td>
<td> </td>
<td colspan="0" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td style="border-bottom: 1px solid #000000">
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging
instruments</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forward contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other non-current liabilities</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>2.8</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.7</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total derivatives designated as
hedging instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>2.8</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.7</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td style="border-bottom: 1px solid #000000">
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as
hedging instruments</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forward contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other non-current assets/liabilities</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>8.4</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>5.4</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">4.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total derivatives</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>11.2</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2.7</td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>7.1</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">5.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following tables present the impact of derivative instruments and their location within the unaudited Consolidated Statement of
Income:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="33%"> </td>
<td width="3%"> </td>
<td width="34%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in income on</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>Location of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives in Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>recognized in income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Hedging Relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps
</div></td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">0.1</td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">(0.6</td>
<td nowrap="nowrap" valign="top">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Natural gas forward contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other (expense) income, net</td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top">(0.2</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top">(1.6</td>
<td nowrap="nowrap" valign="top">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">(0.1</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">(2.2</td>
<td nowrap="nowrap" valign="top">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="27%"> </td>
<td width="5%"> </td>
<td width="33%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in income on</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 0px solid #000000"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>Location of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Hedge items in Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>recognized in income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Hedge Relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fixed-rate debt
</div></td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">(0.1</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">0.6</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Natural gas
</div></td>
<td> </td>
<td align="left" valign="top">Other (expense) income, net</td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top">0.1</td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top">1.2</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">1.8</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in OCI on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>reclassified from AOCI</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>into income (effective portion)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives in cash flow hedging relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forward contracts
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(0.7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.4</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"><b>$</b></td>
<td align="right"><b>(0.7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.4</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in OCI on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>reclassified from AOCI</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>into income (effective portion)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives in cash flow hedging relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forward contracts
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.8</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.2</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.8</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1.2</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="35%"> </td>
<td width="3%"> </td>
<td width="38%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of gain or (loss)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>recognized in income on</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>derivative</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>Location of gain or (loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives not designated as</b></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>recognized in income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>hedging instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forward
contracts
</div></td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">0.1</td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forward
contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other (expense) income, net</td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"><b>7.3</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top">1.2</td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top"><b>5.0</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"> </td>
<td align="right" valign="top">2.6</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>7.3</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">1.3</td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>5.0</b></td>
<td valign="top"> </td>
<td> </td>
<td align="right" valign="top">$</td>
<td align="right" valign="top">2.6</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 16 — Fair Value
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date (exit
price). The FASB provides accounting rules that classify the inputs used to measure fair value
into the following hierarchy:
</div>
<div align="left" style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">      Level 1 — </td>
<td> </td>
<td>Unadjusted quoted prices in active markets for identical assets or liabilities.</td>
</tr>
</table>
</div>
<div align="left" style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">      Level 2 — </td>
<td> </td>
<td>Unadjusted quoted prices in active markets for similar assets or
liabilities, or unadjusted quoted prices for identical or similar assets or liabilities
in markets that are not active, or inputs other than quoted prices that are observable
for the asset or liability.</td>
</tr>
</table>
</div>
<div align="left" style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">      Level 3 — </td>
<td> </td>
<td>Unobservable inputs for the asset or liability.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the fair value hierarchy for those assets and liabilities measured at
fair value on a recurring basis as of June 30, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Fair Value at June 30, 2010</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Level 1</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Level 2</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Level 3</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency hedges
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>11.2</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>11.2</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Assets</b>
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>11.2</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>11.2</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency hedges
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>7.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>7.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Liabilities</b>
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>7.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>7.1</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Financial Instruments</u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has adopted the revisions to the FASB’s accounting rules regarding financial
instruments. The carrying value of cash and cash equivalents, accounts receivable, commercial
paper, short-term borrowings and accounts payable are a reasonable estimate of their fair value due
to the short-term nature of these instruments. The fair value of the Company’s long-term fixed-rate
debt, based on quoted market prices, was $476.8 million and $440.1 million at June 30, 2010 and
December 31, 2009, respectively. The carrying value of this debt was $437.7 million and $430.6
million at June 30, 2010 and December 31, 2009, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 17 - us-gaap:ScheduleOfSubsequentEventsTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt">Note 17 — Subsequent Events
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On July 19, 2010, the Company announced the execution of an agreement to acquire the business of QM
Bearings and Power Transmission, Incorporated (QM). QM is located in Ferndale, Washington and
manufactures spherical roller bearing steel housed units and elastomeric and steel couplings used
in demanding processes such as sawmill and logging operations. QM posted sales of more than $14
million in the last twelve months. The Company expects to close the transaction by the end of the
third quarter of 2010, subject to the satisfaction or waiver of customary closing conditions.
</div>
</div>
false
--12-31
Q2
2010
2010-06-30
10-Q
0000098362
96740681
Yes
Large Accelerated Filer
1484076144
TIMKEN CO
No
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